Report summary: Overview of financial data for the first quarter report: After turning a loss into a profit in 2015, the company has achieved another excellent performance since the beginning of the year. The performance report for the first quarter of 2016 released on January 12 showed that during the reporting period, the company achieved operating income of 462 million yuan, an increase of 36.69% over the previous year; thanks to a sharp reduction in total operating costs, the company's operating profit reached 407.691 million yuan, an increase of 232.73% over the previous year, far higher than the increase in revenue; and net profit attributable to shareholders of listed companies was 32.2074 million yuan, up 156.61% year on year. The high growth in operating performance was mainly due to the year-on-year increase in the company's electricity, natural gas, and tap water business profits during the reporting period, and the sharp reduction in losses from the subsidiary Leshan Mojiang Coal and Electricity due to the completion of personnel settlement and the disposal of some assets. Go to battle lightly to speed up the disposal of loss-making subsidiaries. Following the execution of bankruptcy and liquidation procedures against the hugely loss-making subsidiary Ledian Tianwei in 2015, the company also accelerated the disposal of Leshan Mojiang Coal and Power. The move has had obvious results, as a result of which the company drastically reduced losses and increased profit indicators in 2015 and the first quarter of 2016. Demand is picking up, and the electricity business outlook is promising. The electricity consumption of the whole society in the first quarter of 2016 was about 1352.4 billion kilowatt-hours, up 3.2% year on year, and the growth rate rebounded 2.4 percentage points year on year. In this context, the company's electricity sales volume in the first quarter of 2016 reached 612.84 million kilowatt-hours, an increase of 53.56% over the previous year. This is not only due to the fact that newly merged subsidiaries were included in the scope of the merger in May 2015, but is also closely related to the increase in electricity consumption in the whole society. Expand investment and expand and strengthen the tap water business. On April 8, the company announced that its holding subsidiary Leshan Water Company and Leshan Water Investment Company plan to jointly invest in the establishment of Leshan No. 5 Water Plant Company to expand and strengthen the tap water business and expand the water supply market. The electricity price policy is adjusted, and profits may decline. Recently, the company received a notice to suspend the sales side of high and dry electricity prices, the Internet side of thermal power, and peak and valley electricity prices for hydropower. It is estimated that this electricity price adjustment will reduce electricity operating revenue in 2016 by about 20 million yuan. Valuation and financial forecast: The company's operating income for the next three years is estimated to be 17.71 billion yuan, 1,903 million yuan, and net profit attributable to the parent company to reach 1.00, 1.14 billion yuan, and 123 million yuan, and EPS is 0.19, 0.21, and 0.23 yuan respectively, giving an increase in holdings ratings. Risk warning: electricity price reduction; non-recurring profit and loss are unsustainable, etc.